Correlation Between Dreyfus Gnma and Dreyfus Fund
Can any of the company-specific risk be diversified away by investing in both Dreyfus Gnma and Dreyfus Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Dreyfus Gnma and Dreyfus Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dreyfus Gnma Fund and Dreyfus Fund Inc, you can compare the effects of market volatilities on Dreyfus Gnma and Dreyfus Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Dreyfus Gnma with a short position of Dreyfus Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dreyfus Gnma and Dreyfus Fund.
Diversification Opportunities for Dreyfus Gnma and Dreyfus Fund
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dreyfus and DREYFUS is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Dreyfus Gnma Fund and Dreyfus Fund Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Fund and Dreyfus Gnma is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Dreyfus Gnma Fund are associated (or correlated) with Dreyfus Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Fund has no effect on the direction of Dreyfus Gnma i.e., Dreyfus Gnma and Dreyfus Fund go up and down completely randomly.
Pair Corralation between Dreyfus Gnma and Dreyfus Fund
Assuming the 90 days horizon Dreyfus Gnma Fund is expected to under-perform the Dreyfus Fund. But the mutual fund apears to be less risky and, when comparing its historical volatility, Dreyfus Gnma Fund is 3.3 times less risky than Dreyfus Fund. The mutual fund trades about -0.05 of its potential returns per unit of risk. The Dreyfus Fund Inc is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,039 in Dreyfus Fund Inc on August 26, 2024 and sell it today you would earn a total of 59.00 from holding Dreyfus Fund Inc or generate 2.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dreyfus Gnma Fund vs. Dreyfus Fund Inc
Performance |
| Timeline |
| Dreyfus Gnma |
| Dreyfus Fund |
Dreyfus Gnma and Dreyfus Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dreyfus Gnma and Dreyfus Fund
The main advantage of trading using opposite Dreyfus Gnma and Dreyfus Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dreyfus Gnma position performs unexpectedly, Dreyfus Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Dreyfus Fund will offset losses from the drop in Dreyfus Fund's long position.| Dreyfus Gnma vs. Dreyfusstandish Global Fixed | Dreyfus Gnma vs. Dreyfusstandish Global Fixed | Dreyfus Gnma vs. Dreyfus High Yield | Dreyfus Gnma vs. Dreyfus High Yield |
| Dreyfus Fund vs. Dreyfusstandish Global Fixed | Dreyfus Fund vs. Dreyfusstandish Global Fixed | Dreyfus Fund vs. Dreyfus High Yield | Dreyfus Fund vs. Dreyfus High Yield |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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